Key gauges continue to trade below neutral lines

Key gauges continued to trade below the neutral lines in early noon session, tracking weakness in the global stocks, in the light of a renewed trade war prospect between world’s two largest economies, the US and China. Sentiments remained pessimistic as investors failed to take any support with Icra’s report highlighting that fiscal deficit of 13 states sharply fell by 25.1% to Rs 3.2 trillion in FY18 from Rs 4.3 trillion in FY17. Meanwhile, Prime Minister Narendra Modi hinted at ‘many more steps’ to take the country’s economic growth rate to double-digits and urged the chief ministers to ‘give fresh ideas’ to the constitutional body ‘for incentivising outcome-based allocations and expenditure correction’.

On the sectoral front, Nifty Metal was top loser, followed by Pharma, Realty, Media, IT and PSU Bank. On the contrary, Nifty Auto was the top gainer, followed by Nifty Bank, which was limiting the losses. On the BSE sectoral front, Metal, Basic Materials and Realty were the top losers. On the other hand Oil & Gas, Auto and Energy were the top gainers. Shares of oil marketing companies and aviation were trading higher after crude oil prices fall. Among oil marketing companies, HPCL, IOC and BPCL were the top gainers. Among aviation stock, Jet Airways India, SpiceJet and InterGlobe Aviation gained. 

On the global front, Asian counters were trading in red, amid escalating trade tensions between the US and China after both countries announced tariffs last week. Markets in China, Hong Kong, Taiwan and Indonesia were closed on Monday for holidays. Back on the domestic turf, the market breadth on the BSE was in favour of decline; there were 828 shares on the gaining side against 1471 shares on the losing side while 118 shares remained unchanged. Meanwhile, broader indices were also trading in negative terrain.

The BSE Sensex is currently trading at 35596.76, down by 25.38 points or 0.07% after trading in a range of 35529.25 and 35721.55. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.14%, while Small cap index down by 0.56%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.36%, Auto up by 0.66%, Energy up by 0.44%, Consumer Disc up by 0.19% and Bankex up by 0.17%, while Metal down by 2.79%, Basic Materials down by 1.52%, Realty down by 0.54%, Utilities down by 0.45% and Healthcare down by 0.41% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 3.08%, Tata Motors - DVR up by 1.53%, Tata Motors up by 1.35%, Bajaj Auto up by 1.19% and Mahindra & Mahindra up by 1.18%. On the flip side, Vedanta down by 3.50%, Tata Steel down by 3.05%, Kotak Mahindra Bank down by 1.82%, Coal India down by 1.47% and ONGC down by 1.18% were the top losers.

Meanwhile, continuing its growth trajectory for the second straight month, India’s merchandise exports grew to a six-month high of 20.18 percent in the month of May 2018, boosted by a rise in receipts of petroleum, engineering and pharmaceutical products. However, trade deficit widened to $14.62 billion during the month under review as against $13.84 billion in May 2017, the highest in nearly four months and mainly because of rising oil imports.

As per the data released by the Commerce Ministry, exports increased by 20.18% to $28.86 billion in May 2018, as compared to $24.01 billion in the same month a year ago. In Rupee terms, it was up by 25.99% to Rs 194928.45 crore in May 2018, from Rs 154713.69 crore in May 2017. Cumulative value of exports for the period April-May 2018-19 was $54.77 billion as against $48.65 billion, registering a positive growth of 12.58% over the same period last year. In Rupee terms, it was up by 16.37% to Rs 364981.41 crore from Rs 313627.48 crore.

Non-petroleum and Non Gems & Jewellery exports in May 2018 were valued at $19.94 billion as against $17.51 billion in May 2017, an increase of 13.85%. Non-petroleum and Non Gems and Jewellery exports during April-May 2018-19 were valued at $39.74 billion as compared to $35.23 billion for the corresponding period in 2016-17, an increase of 12.78%. 

Imports during May 2018, increased by 14.85% to $43.48 billion as compared to $37.86 billion in May 2017, while in rupee terms it was up by 20.41% to Rs 293660.48 crore from Rs 243888.74 crore in May 2017. Cumulative value of imports for the period April-May 2018-19 was $83.11 billion as against $75.74 billion, registering a positive growth of 9.72% over the same period last year. In rupee terms, it was Rs 553745.15 crore, up by 13.41% from Rs 488269.26 crore in the same period last year.

Oil imports during May 2018 were valued at $11.50 billion which was 49.46% higher than oil imports valued at $7.69 billion in May 2017. Oil imports during April-May 2018-19 were valued at $21.91 billion which was 45.56% higher than the oil imports of $15.05 billion in the corresponding period last year. Non-oil imports during May 2018 were estimated at $31.98 billion which was 6.03% higher than non-oil imports of $30.16 billion in May 2017. Non-oil imports during April-May 2018-19 were valued at $61.19 billion which was 0.83% higher than the level of such imports valued at $60.69 billion in April-May, 2017-18.

The CNX Nifty is currently trading at 10814.50, down by 3.20 points or 0.03% after trading in a range of 10787.35 and 10830.20. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were HPCL up by 5.79%, Indian Oil Corporation up by 5.01%, BPCL up by 3.32%, ICICI Bank up by 3.04% and Tata Motors up by 1.52%. On the flip side, Vedanta down by 3.48%, Hindalco down by 3.22%, Tata Steel down by 3.04%, Lupin down by 1.77% and Coal India down by 1.45% were the top losers.

All the Asian markets were trading in red; Nikkei 225 decreased 171.42 points or 0.75% to 22,680.33, KOSPI Index declined 31.08 points or 1.29% to 2,372.96 and FTSE Bursa Malaysia KLCI was down by 13.71 points or 0.78% to 1,748.07.